BAE worry over Airbus setback

BAE Systems is bracing itself for more bad news from Airbus this week.

The Toulouse planemaker, in which BAE has a 20% stake, is expected to warn it will miss delivery targets.

Airbus had hoped to hand over 300 aircraft this year, 20 more than arch rival Boeing.

But a downturn in air travel exacerbated by the Iraq war and the respiratory illness Sars is prompting airlines to cancel-orders. Last week, US Airways cut its Airbus order from 19 to ten. And in a huge blow to Airbus, the biggest industry order for the year - 45 aircraft for All Nippon Airways - was won by Boeing.

Airbus also announced last week that it had delivered just 65 planes in the first quarter of the year against Boeing's 70.

Shares in BAE Systems, which makes the wings for Airbus, ended last week at 122p.